The global low-speed electric vehicle market is expected to expand from a value of $2.39 billion in 2017 to $7.62 billion by 2025, reflecting a CAGR of 15.4% from 2018 to 2025. According to the report, "Low-speed Electric Vehicles Market by Vehicle Type (Passenger Vehicle, Heavy-duty Vehicles, Utility Vehicles, and Off-road Vehicles) and End User (Golf Courses, Tourist Destinations, Hotels & Resorts, Airports, Residential & Commercial Premises, and Others) - Global Opportunity Analysis and Industry Forecast, 2018-2025,” published by Allied Market Research, the market is being driven by factors including stringent norms for vehicular emission due to deteriorating air quality, rise in popularity of neighborhood electric vehicles for short commute, surge in fuel costs, and diminishing reserves of conventional resources. However, high cost of vehicles and lack of adequate charging infrastructure are expected to hinder the market growth. Conversely, increase in government subsidies and rise in R&D activities in the sector for launching more efficient electric vehicles would provide lucrative opportunities to the market.
The off-road vehicle segment is expected to dominate, with the heavy-duty vehicle segment registering the fastest growth by 2025. Among vehicle types, the off-road vehicle segment held the largest share in 2017, accounting for two-fifths of the total market revenue. This is attributed to factors such as high performance and robustness coupled with rapid proliferation of hospitality and tourism industry.